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Rs 300 Crore Land Scam Uncovered in Karnataka by IT Department
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News18•10-10-2026, 11:18
Rs 300 Crore Land Scam Uncovered in Karnataka by IT Department
- •The Income Tax Department has uncovered a tax and stamp duty evasion method involving land deals worth over Rs 300 crore in Karnataka.
- •Local builders allegedly showed lower property prices in registered sale deeds while preparing separate unregistered settlement deeds for the remaining amounts.
- •This loophole allowed buyers to pay minimal stamp duty and registration fees, directly impacting the state exchequer.
- •Investigators also found instances of failure to deduct TDS on urban agricultural land deals and skipped income tax filings by sellers.
Key Questions Answered
Builders allegedly underreported property prices in registered sale deeds to lower stamp duty and registration fees while preparing separate unregistered settlement deeds for the remaining amounts paid through banking channels.
Income tax officials have suggested that the government review and increase guidance values or circle rates around urban areas so they align closer to actual market rates.
Investigators found that some buyers failed to deduct TDS on urban agricultural land purchases, and certain sellers claimed tax exemptions without filing their income tax returns.
